Islamabad, July 13, 2024 – Prime Minister Muhammad Shehbaz Sharif on Saturday directed the Federal Board of Revenue (FBR) authorities to tighten their belts and serve the nation by formulating a strategy and mechanism, coupled with the usage of the latest technology, to broaden the tax net without further burdening the honest taxpayers.
During a visit to the FBR Headquarters, the Prime Minister emphasized that the incumbent government had the sole agenda of putting Pakistan on the path of progress with consistent improvement in economic indicators. “Though it may be a difficult journey that requires collective and individual efforts, sincerity, and sacrifices, and putting forth the national interests supreme over all other interests,” he emphasized.
Positive Outlook Amid IMF Arrangements
Terming the staff-level arrangement with the International Monetary Fund (IMF) as a positive omen for the country’s economy, PM Shehbaz expressed hope that the IMF board would also approve the agreement. He stressed the need for the FBR to act speedily and work tirelessly to make this IMF program the last in the country’s history, setting the stage for a journey of progress and prosperity.
The Prime Minister expressed confidence that Pakistan could become a great and prosperous country with collective and individual efforts. He underscored the importance of levying taxes on those who had not been paying any, highlighting that the repeated burdening of honest taxpayers, including government employees who file their annual tax returns, must end.
Leveraging Technology for Broader Revenue Base
PM Shehbaz directed the FBR to use the latest technology, including artificial intelligence, to broaden the revenue base. He highlighted the need for digitizing the FBR, which should be fully utilized to improve tax collection. “Nations cannot be built by constantly seeking foreign debts,” he remarked, urging for reforms in the FBR to be carried out impartially and in the national interest.
He also directed the FBR chairman to bring all hidden issues related to the department to the table without wasting time. Praising the FBR for collecting 30 percent more revenue compared to the last year’s corresponding period, the Prime Minister emphasized that enforcing taxes should be the top agenda for meeting revenue targets.
Facilitating Taxpayers and Ensuring Compliance
PM Shehbaz stressed that the FBR should facilitate tax-paying businessmen and industrialists instead of creating problems for them. He recalled that 27 years ago, in Punjab province, they had imposed a tax on the agriculture sector after thorough consultations, which was later emulated by other provinces. He also highlighted the need to resolve the issue of general sales tax collection.
The Prime Minister made it clear that he would not tolerate any lapses, adding that determination combined with sincerity would carve paths to the future. During his visit, PM Shehbaz was welcomed by Minister for Finance and Revenue Muhammad Aurangzeb, Minister of State for Finance and Revenue Ali Pervaiz Malik, and Chairman FBR Malik Amjad Zubair Tiwana.
Strengthening the FBR’s Technological Infrastructure
PM Shehbaz laid a floral wreath on the memorial of shuhada and offered Fateha, as reported by the PM Office Media Wing. He underscored that the FBR is the backbone of the country’s economy, and its automation and digitization are among the government’s top priorities. He directed the immediate release of Rs. 2 billion for streamlining the Web-Based One Customs System (WeBOC) to the latest standards.
The meeting, attended by various ministers and senior officials, included a briefing on the ongoing reforms in the FBR and a presentation on the long-term digitization strategy. The digitization of all services of Pakistan Customs, in accordance with the latest requirements, is rapidly progressing.
Broadening the Tax Net
The Prime Minister was informed about the completion of the first phase of the FBR Tajir Dost Mobile application, under which all tax return processes can be completed with ease. Using the latest technology, approximately 4.9 million eligible individuals who could pay taxes have been identified. He directed the immediate inclusion of these individuals in the tax net.
PM Shehbaz also instructed the FBR chairman to meet with flour mill owners to resolve their justified demands, emphasizing a cooperative approach to address industry concerns.
The Prime Minister’s directives to the FBR highlight a determined push towards enhancing revenue generation through modern technology and fair practices. By broadening the tax net and ensuring compliance without overburdening honest taxpayers, the government aims to pave the way for economic stability and growth. The emphasis on technology and digitization reflects a forward-thinking approach to address the country’s fiscal challenges.